Why Did Suzano Plunge 10.8% Despite Strong Q1 Earnings?

On May 9, 2025, Suzano's stock experienced a significant drop of 10.8% in pre-market trading, reflecting a notable shift in investor sentiment.

Suzano reported a strong first quarter for 2025, with a 10% increase in pulp sales and a 25% increase in paper sales. The company achieved an adjusted EBITDA of R$4.9 billion, demonstrating robust operational efficiency despite various challenges. Additionally, Suzano recorded a record net revenue of R$11.6 billion, marking a 22% increase compared to the same period last year. This financial performance underscores Suzano's ability to navigate market conditions effectively.

However, Suzano's stock score is influenced by several factors, including high leverage, a significant net loss, and valuation concerns. These elements have contributed to the recent decline in stock price, as investors weigh the company's financial health against its operational strengths. The company's earnings release for the first quarter of 2025, filed with the SEC, provides detailed insights into its financial performance and operational metrics.